The "eternal German Chancellor" Angela Merkel has been re-elected for the fourth term in federal elections.
With nearly 33 per cent of the votes, Angela Merkel’s conservative Christian Union (CDU/CSU) remained the single largest party in Germany’s parliament.
Merkel's nearest rival and former coalition partner, the social democratic SPD came a distant second with 21 percent vote and decided to end the alliance with conservative Christian Union (CDU/CSU).
The results also shocked the German establishment as the anti-immigration nationalist AfD won 13 percent to become country’s third biggest party.
After the shocking 13 percent win, AfD co-leader Alice Weidel told supporters "millions of voters have entrusted us with the task of constructive opposition work in parliament".
It was the first time, a hard-right nationalist party with so many seats shall enter the German parliament since World War Two.
After the exit polls declared Merkel a clear winner, she vowed to win back voters from the AfD and admitted the party's entry into parliament poses "a big challenge".
In her victory speech, Merkel told supporters in Berlin, "Of course we had hoped for a slightly better result. But we mustn't forget that we have just completed an extraordinarily challenging legislative period, so I am happy that we reached the strategic goals of our election campaign.”
"We are the strongest party, we have the mandate to build the next government - and there cannot be a coalition government built against us," she said.
Meanwhile, the results were a big disappointment for, the social democratic SPD who fall to a new low post-World War Two.
Expressing his disappointment, SPD leader Schulz said the result was the end of the "grand coalition" with Merkel's alliance.
"It's a difficult and bitter day for social democrats in Germany," he told supporters. "We haven't reached our objective," said Schulz.